Investment Corporation of Dubai has signed a collaboration agreen to "explore mutually beneficial investment opportunities" with Russia's sovereign fund, the Russia Direct Investment Fund (RDIF).
The agreement will lead to a co-investment platform being set up to look at investment opportunities in both the UAE and Russia.
“Today’s agreement is a significant first step towards exploring the potential benefits and growth that are realisable on both sides,” said Mohammed Ibrahim Al Shaibani, executive director and chief executuve of ICD, which is the Dubai's sovereign fund. “We are enthused by the opportunities that lie ahead, and look forward to seeing them come to fruition in the near future,” he added.
The agreement was signed during Russian President Vladimir Putin's visit to the UAE, which followed a visit to Saudi Arabia.
RDIF has already created a joint investment platform with Saudi Arabia's sovereign fund, the Public Investment Fund, which Mr Putin said in an interview with Al Arabiya TV earlier this week was worth about $10 billion, of which $2bn has already been invested.
The partnership agreement with ICD is "aimed at actuve development of relations with the UAE business community", RDIF's chief executive, Kirill Dmitriev said.
"I am sure that we will be able to find many attractive investment opportunities, we plan to start cooperating in the near future,” he added.
Several other deals were signed during Mr Putin's visit to the UAE on Tuesday, including an agreement by Abu Dhabi National Oil Company to sell a 5 per cent concession in the Ghasha concession to Russia's Lukoil.
ICD was founded in 2006 and had more than $237bn of net assets at the end of last year, according to its most recently filed accounts. The Russian Direct Investment Fund has reserved capital of about $10bn under its management, according to its website.